> Especially if the company you’re working for is not actually struggling economically right now. If you work for Google, say, you must be thinking, “What is it about the coming recession that makes a company that’s doing just fine institute broad layoffs for the first time in its 23-year history?”
People commenting about the layoffs keep citing the financial health of the companies that are doing the layoffs as evidence that there is some ulterior motive, but this misses why companies perform layoffs.
Companies don't choose to hire when they are profitable and layoff when they are losing money. As an example, most tech companies spend their early years losing money while growing hiring and no one assumes they have an ulterior motive.
The reason companies perform layoffs is that they believe the labor they are buying is more expensive than the profits from the products they were planning to build with those employees. If they think consumer demand is going to drop, then new investment opportunities won't be as lucrative and they thought they were.
Yes, it sucks for the employees and yes we want corporate leaders to have better economic foresight so this doesn't happen. But you don't need some elaborate Marxist theory of class warfare to explain why this is happening, and it does not represent monopsony collusion.